Saudi Cable plans capital hike to buy raw materials, positive changes to take place by year-end: chairman

Meyassar Nowailati, Chairman of Saudi Cable Co.

Saudi Cable Co. applied to increase its capital to raise the liquidity required for purchasing raw materials and use them in production, board chairman Meyassar Nowailati told Argaam in a telephone interview.

The company will see major and positive changes by year-end, he added.

Saudi Cable is still far from the target production levels that should be reached in light of its potentials, as its working capital is still weak.

Last year, the company raised its capital, using the largest part of it to finance working capital. However, Saudi Cable’s capital needs are “very large”.

Therefore, the firm will work on completing the balance sheet restructuring and extend the maturity of some short-term liabilities, Nowailati concluded.

In February 2021, Saudi Cable board of directors recommended raising capital through SAR 360 million rights issue, Argaam reported.